Last week I built up my first position in $NOVO B (-0.37%) built up.
I am well aware that the euphoria surrounding the share has waned considerably in recent months. Competition in the market for obesity and diabetes drugs has increased and market shares have shifted accordingly. This is probably one of the main reasons for the weaker share price performance in recent months.
Nevertheless, I still consider the market to be extremely attractive. Even if $NOVO B (-0.37%) no longer occupy the dominant position of recent years, I believe that the overall market is growing so strongly that even a smaller market share than today can still represent a very interesting business.
In addition, the company has a strong balance sheet, high margins, impressive profitability and a long history of increasing dividends. As a dividend investor in particular, I really like the combination of operational growth and continuously rising dividends.
For me, the current entry is therefore not a bet that $NOVO B (-0.37%) that the company will regain market share, but rather that it will remain a significant winner in the long term, even in a much larger market.
~ No investment advice ~
